Accounting Basics

Payroll – The total amount earned by all employees for a pay period.
The company issued common stock to owners for $100,000 cash
● The company purchased $50,000 of equipment by making a $20,000 cash down payment and signing a note payable for the balance – ● The company made a $13,000 cash payment on the note payable from the purchase of equipment
● The company sold a piece of equipment for $3,000 cash. The equipment was sold at cost, thus there was no gain or loss on the sale.
Net Sales – Gross sales-Sales returns and allowances=___ ______
Hughes Company has a credit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on the review and aging of its accounts receivable at the end of the year, Hughes estimates that $60,000 of its receivables are uncollectible. The amount of bad debts expense which should be reported for the year is
A. $5,000.
B. $55,000.
C. $60,000.
D. $65,000. – B
Balance Sheet reports: – A company's financial position
component percentage of net income – net income / sales
Selling and Admin Expense – cost of the ad place in the Newark Transcript for custom make furniture
Financial accounting – area of accounting aimed at serving external users by providng them with general-purpose financial statements.
Invoice – A paper showing quantity, description, prices of items, total amount of purchase and the terms of payment
checking account – a bank account against which the depositor can drawn checks payable on demand
The Great Pyramids at Giza date to:
Benefits of sustainability reporting – Direct cost savings and enhance reputation in the market
Economic Entity Assumption – The idea that only the business' transactions should be recorded in the entity's books. Owner and mangers' personal transactions should NOT be recorded in the business records
liabilities – obligations of the business; money owed to creditors
Tinker Bell Company has the following:

Units/Unit Cost
Inventory, Jan. 1
8,000/$11
Purchase, June 19
13,000/$12
Purchase, Nov. 8
5,000/$13

If Tinker Bell has 9,000 units on hand at December 31, the cost of the ending inventory under LIFO is:
A. $113,000.
B. $108,000.
C. $99,000.
D. $100,000. – D

It is assumed in CVP analysis that the unit selling price, unit variable costs, and unit fixed costs are known and constant. – False
The Greаt Pyrаmids аt Giza date tо:
Budgeted Sales – =Sales Forecast (in units) x unit selling price
analyzing – determining the fundamental significance of business transactions so that financial information may be properly processed
International financial reporting standard – Accounting procedures that could replace GAAP

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply